GDT: Dairy prices rise again with 1.2% increase, whole milk powder up 3%

There's been another positive result in the Global Dairy Trade auction. Photo / DairyNZ

Prices have risen again in the latest Global Dairy Trade auction, held overnight, with a 1.2% increase across the board.

This follows a 0.8% increase from two weeks ago.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - recorded a solid 3% lift, to an average of US$3559/MT.

Skim milk powder - Fonterra’s second-biggest reference product – dipped 0.6%, to an average of US$2795/MT - it was up 2.2% at the previous event.

Lactose recorded the largest increase - rising a healthy 6.7%, to an average of US$952/MT.

This follows another positive result from the last event where it had a 3.5% lift.

Butter milk powder was not far behind on a 5% boost to an average of US$3171/MT.

Chedder rounded out the positive reference products - up 3.8% to an average of US$4606/MT.

The biggest percentage fall came from mozzarella, which plunged 7.7% to an average of US$4960/MT - a contrast to the previous auction where it gained the most - rising 4.5%.

Other negative results were anhydrous milk fat, with a 0.1% dip to an average of US$7213/MT, and butter, which dropped 1.4% to an average of US$6407/MT.

A total of 38,848 MT of product was purchased by 140 successful bidders, compared to 38,8147 MT and 127 winning bidders last time.

On September 25, Fonterra revised its farmgate milk price forecast for the 2024/25 season, to between $8.25/kgMS and $9.75/kgMS, with a midpoint of $9/kgMS.

This follows from August 23, when Fonterra’s farmgate milk price forecast was between $7.75/kgMS and $9.25/kgMS, with a midpoint of $8.50/kgMS.

The final farmgate milk price for the 2023-2024 season was $7.83/kgMS milk solids.